Dubai: The UAE Ministry of Finance and the Federal Tax Authority confirmed that starting in 2026, the fixed percentage-based excise tax currently applied to sugar-based drinks will be replaced with a sugar-content-based model.

This change marks a shift in the country’s approach to tackling sugar consumption, aiming to directly incentivise manufacturers to reduce sugar levels in their beverages. Authorities say the move aligns with broader public health goals to encourage healthier dietary habits among residents.

The early announcement of the policy provides suppliers, importers, and stakeholders ample time to adapt, with businesses encouraged to review their product formulations and systems well ahead of the implementation deadline.

To support the transition, the government will roll out awareness campaigns to ensure the updated tax mechanism is fully understood and smoothly implemented across the board.

“Businesses across the UAE will be granted sufficient time to prepare for the updated mechanism,” the Ministry affirmed in its statement.